Career Stage 2: What I Learned as CEO of a Family Business
During the first stage of my career in the 1970s, I worked for Vomela Specialty Company, a business that provided state-of-the-art converting services for printing and packaging companies that used screen or flexographic printing processes. My father, Carlo LaManna, was plant manager and owned 20% of the company.
Carlo and my immediate supervisor Joe Ekhamel Sr. taught me about the key facets of the business, including operating metrics, quality tolerances, job costing, gross margins, and workplace culture.
When Carlo acquired full ownership of Vomela in 1980, he named me president and CEO. I was just 26 years old.
After decades of hard work to support 11 children, Carlo was ready to relax a bit and spend more time with my Mom. His plan was to coach me to grow the business while he assumed a less active role in day-to-day operations.
Lessons Learned
These are my takeaways learned while serving as CEO from 1983 to 1990.
Prepare for the unexpected. In the 1970s. Vomela worked closely with 3M Company as a beta site for testing innovative new products and applications of adhesive vinyl for sale to global markets. It was a profitable partnership.
But soon after my Dad acquired full ownership of Vomela in 1980, 3M presented us with a 3-year plan that jolted us out of complacency. In 1981, 3M would source millions of parts to Vomela, as usual. In 1982, they planned to scale back to sourcing 50% of the parts from us. In 1983, they promised nothing to us.
That harsh reality hit me hard. I was assuming the helm of a company that would lose 90% of its business over the next three years. I faced 3 years of diminishing purchase orders and depreciating machines.
The plan was 3M’s strategic vision to take R&D and automated manufacturing in-house. But we called it “Third-Year Zero” to remind us that our business doomsday clock was ticking.
After considering various options for the future (including merging with 3M), Vomela decided to go it alone. Applying what we had learned from working with 3M, we decided to continue to invest millions in talent, new technology, branding, marketing and sales, strategic alliances globally, and all-in growth strategies.
From 1982-1984, we started transitioning to the new technology. It would allow Vomela to expand along with 3M in converting adhesive vinyl into new types of products.
The unfortunate consequence of this early transition to computer-aided design (CAD) and computer-aided manufacturing (CAM ) meant a lay off of 120 sheet-fed machine operators and other employees. This layoff process was emotionally devastating for everyone involved, including me. I even fired my own brother.
After assembling a “brain force” of people who could bring us the type of innovative thinking Carlo was known for, we developed global strategic alliances, diversified our customer base, and grew sales and profits. By 1988 we were back up to 150 employees.
I got my first taste of the M&A activity (and an appreciation for outside experts) during this phase when Vomela acquired printing companies that could help us achieve our vision for a new Vomela.
Learn from bigger companies. Although we were devastated by 3M’s decision to take their R&D and automated manufacturing work in-house. We felt privileged to have collaborated with 3M innovators for almost 30 years. It was an awesome experience to be involved in the earliest stages of the development of computer-cut digitally printed adhesive graphics and decals for vehicles, signs, and truck fleets.
When it came to converting adhesive vinyl, we could do things with automotive and RV graphics that competitors hadn’t yet imagined. And 3M taught us how to take our innovative ideas and scale them up by traveling the globe and setting up partnerships.
Develop a sales and marketing team. I am a sales guy by nature. I am passionate about working with people and making deals. So while other staff members handled technical and administrative phases on the company rebuilding process, my role was to build a sales and marketing team.
Because Vomela had exclusive rights (and discounted pricing) to special 3M graphic films, we branded Vomela as the Can Do company. Our brand-building awareness campaign set the stage for acquiring new customers and strategic partners.
Be willing to take risks. Don’t be afraid of capital investments in new technology if it can help your company maintain a competitive advantage or gain loyal customers.
Our early investments in computer-aided design and manufacturing set us apart from competitors. It also enabled us to explore what might be possible when we didn’t have to manufacture new metal dies each time we wanted to change the size or shape of a printed label or decal. We could freely experiment with what new products might be possible with larger-format printed decals and labels.
Never stop learning. It took me 8 years to earn my bachelor’s degree. During the early years of my college experience, I was too focused on partying and having fun. During that 8 years, I got married, had kids, and started working multiple jobs. I attended college at night and eventually earned my degree.
In spite of my struggles with academics, when I had the opportunity to attend an executive leadership development program at Harvard Business School, you bet I jumped on it.
Protect your intellectual property. During our collaboration with 3M, we treated them like an extension of our family. New product engineers had full access to our factory floor. They weren’t trying to copy our systems, but they did study them in order to make them better through automation.
One of the first things I did as president of Vomela was make it a closed shop. I had learned the hard way about the risks of sharing trade secrets and the value of non-disclosure agreements.
Have a succession plan in place early. My father was a smart man. He knew he didn’t want to work hard forever. So he put himself in a position to buy and grow Vomela. Then, he groomed me to succeed him so he could ease into retirement.
He envisioned that eventually, I would be able to buy the company for the amount of money he wanted in order to enjoy retirement to the fullest. As I learned during the next stage of my career, it’s not always easy to live up to your father’s expectations.
About the Book
My memoir, They Named You Right, is a personal story about my father, the label-converting business he built and acquired, and some of the hard lessons I learned when he sold the business to me instead of one of my 10 siblings. It’s a cautionary tale about what happens when family wants and interests clash with what’s best for the business and the consequences of prioritizing business over people.
Get your copy at theynamedyouright.com. All proceeds from book sales will be donated to charitable organizations close to my heart, including Clinics Can Help in West Palm Beach, FL and South St. Paul Educational Foundation.